Citigroup Expects Shares To Retrench For Waddell & Reed Financial

In a report published Thursday, Citigroup analyst William R. Katz reiterated a Sell rating and $39.00 price target on

. In the report, Citigroup noted, "We see four key issues emerging from February U.S. MF AUM/flow metrics (see also 3/11, February U.S. MF Flow/AUM Trends: Industry Flows Double M/M But The Group Remains A Mixed Bag) that we believe will work the shares lower. We affirm our non-consensus Sell recommendation; ‘Street'-low $39 12-month target and below-consensus estimates, the latter facing negative bias given weak markets March to date and above-forecast net attrition pace." Waddell & Reed Financial closed on Wednesday at $48.65.